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5 Tools to cope up with GST and increase compliance rating

The blog aims to compel you to take action if you're stuck in the dilemma of GST filing.

5 Tools to cope up with GST and increase compliance rating

Thursday October 19, 2017,

5 min Read

 GST, a nationwide tax, that aims to unite India into one single market is becoming a riddle for small and medium-sized businesses, therefore, the businesses are in Wait-and-watch mode which has resulted into loss of jobs. However, these are transitional difficulties which will end sooner or later. 

Image Credit:

Image Credit:

There have been lots of expert opinions and expert article have been written which have broaden the common there have been lots of expert opinions and expert article have been written which have broadened the common man's understanding of GST. However, what remains crucial is how it is implemented at gross roots level where there is a lot of confusion.

The recent increase in manufacturing shows a positive sign in face of demonetization and implementation aimed at curbing black money and unifying nation into a common market,

However, with less awareness about the structure of GST at grass root level has caused some short-term losses in jobs – which otherwise I'm sure would provide thrust to Indian Market in the longer run.

Therefore this article talks about most effective solutions to solve the riddle of GiST and win compliance rating

What is Compliance Rating

Compliance rating is a numerical scale provided to businesses on the basis of their tax filing habits. And naturally, while claiming input tax credit, those with higher compliance gets preferential treatment.

Common Concerns with GST

1. Fear of losing competition:

Some of the small traders fear losing businesses to non-branded competitors. Since some of the products which were earlier otherwise outside Tax regime have now been made to comply with GST.

However, with now with GST being enforced, there is an additional tax rate, and since those companies that are trademarked have to invest a substantial part in quality checks and good process, therefore now the gap between the pricing of those are the trademark and that non-trademarked will widen.

Information Source: The HIndu: To avoid GST, dal and rice traders give up registered trademarks

2. The concern with Filing to claim input tax credit for the Pre-GST era:

There are concerns related to the filing of GST TRAN – 1, a form which would help sellers claim input tax credit for a pre-GST area. However, manual error in filing may hamper the amount of total amount of input tax credit.

Information Credit: The Economic Times: Companies fear losing credit over GST filing errors

3. Filing of reports:

Also, the number of return filings in the year – 37 – is also a big concern for traders.

The GST 1, GST 2 and GST 3 forms have to be filed on 10th, 15th and 20th of the next month and one annual filing, therefore amounting to 37.

All the above concerns are valid, However, the bigger concern is the widespread unawareness and lack of machinery which can educate small and businesses to understand and eradicate the unawareness thereby putting a stop to rumors.

An example of one of the rumor is “Although the total no of filing in a fiscal year is 37, the GST 2 and GST 3 forms are auto-populated on the basis of information provided manually in the GST 1. Thereby, automating the 67% of the manual work.

And this is possible with right sort of tools – ERP software, accounting software, GST enabled POS systems. They nearly automate the entire process.

The benefits of using tools:

1. Helps in streamlining and automating the GST return filing and generating invoices, thereby reducing manual efforts very considerably.

2. Validation and Correction engines find and report the manual error, therefore, improving the accuracy of filing.

3. Educating the business about merits of GST and making them familiar with the GST regime thereby helping businesses transition smoothly and adapt to the new regime.

4. Enables bulk transfer of data, perform calculations on large-scale accurately and prepare an error-free balance sheet making filling and compliance a seamless experience.

The solutions

There are several tools which you can easily search on Google, (who's repository I've made here by having the experience of been-there-and-done-that. As I'm the co-founder of CedCommerce – recognized among the winners of Deloitte's Technology Fast 50 India program.)

These are:

1. For Small and Middle Scale businesses who deal major of their transaction either through Debit Cards and Cash.

ClearTax (among the most used software): Learn more

Tallysolutions' accounting software for GST filing and invoices. Learn More

Zoho Books (among the most popular software): Learn more

2. For E-commerce website Owners:

Indian GST Extension ( A onetime payment and affordable plugin for Magento Based Website Owners). Learn More

3. GST enabled POS system:

Used by Businesses such as grocery stores, supermarkets, and restaurants for processing online payment Learn More Learn More

Other Tools: Discover here

All in all the blog aims to provide the point based solution to eliminate all the hassle of GST for this turbulent times and prepare to adapt to changed regime – dubbed as the biggest reform after the independence.

The writer doesn't claim to have the expertise of what many distinguish scholars may have, however, what writer promises a point based approach to solve the GST riddle in the time-bound and effective manner.

Do share, if even a one people can benefit from this information, I will consider my effort validated.